Marriott 2nd-Quarter Earnings Flat
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LANHAM, Md. (AP) _ Second quarter earnings for hotel operator Marriott International were about the same as a year ago due to continued weakness in the travel industry, but the company easily beat Wall Street expectations.
Marriott reported earnings Thursday of $129 million, or 50 cents per share, for the three months ended June 14. The Bethesda-based company earned $130 million, or 50 cents per share, in the same quarter of 2001.
The consensus of analysts surveyed by Thomson Financial/First Call was that Marriott would earn 42 cents per share.
The earnings also beat the company’s April forecast of between 41 cents and 43 cents per share for the quarter.
Revenue rose to $2.58 billion from $2.45 billion a yar ago. Systemwide sales including fanchise operations were $5.1 billion, up 5 percent from the 2001 second quarter.
Marriott has struggled to recover from the post-Sept. 11 travel slump and a weak economy that has cut heavily into its travel income, especially among business travellers.
Revenue per available room, an industry barometer of a hotel company’s health, was down 8 percent in the second quarter. Marriott’s average room rates dropped 6.6 percent and occupancy fell to 73.2 percent during the quarter.
For the first half of the year, Marriott earned $211 million, or 82 cents per share, compared to $251 million, or 97 cents per share, a year ago. Revenue rose to $4.95 billion from $4.91 billion a year ago.
The company predicted Thursday that earnings for the third quarter will be between 41 cents and 43 cents per share and that 2002 earnings will range between $1.74 and $1.78 per share.
The consensus forecast of analysts surveyed by Thomson Financial/First Call was for earnings of 42 cents a share for the third quarter and $1.70 for the year.
In midday trading on the New York Stock Exchange, Marriott shares were down 2 cents at $34.75.
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